FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT:
June 6, 2000 John Winston (202) 418-7450
FCC ACTION NETS HIGHEST SLAMMING PAYMENT EVER
MCI WORLDCOM TO PAY $3.5 MILLION
Latest Action Brings Slamming Total
To Over $8.5 Million Since February
Washington, D.C. - Today the Federal Communications Commission (Commission)
released an order adopting a Consent Decree between the Commission and MCI WorldCom
Communications, Inc. (MCI WorldCom) that terminates a Commission investigation into
unauthorized conversion (slamming) of consumers' preferred carriers by MCI WorldCom. In
the agreement, MCI WorldCom agrees to restructure significantly its telemarketing and other
business practices to protect consumers against slamming.
Under the terms of the Consent Decree, MCI will make a voluntary contribution to the
United States Treasury in the amount of $3,500,000. MCI WorldCom has also agreed to take
major actions to deter slamming, including, among others: 1) to implement a significantly
revised slamming prevention program which will include financial disincentives and strict
disciplinary provisions for its employees and agents found to be engaged in slamming; 2) to
establish a new credit policy which will require the issuance of credits to those consumers who
claim to have been slammed; 3) to establish an Executive Review Panel to conduct quarterly
reviews of quality control; and, 4) to report to the Commission on the progress of its anti-
slamming program and its record of compliance with the Consent Decree.
The Consent Decree follows five other recent slamming enforcement actions by the
Commission since February 2000: 1) a $1.36 million forfeiture imposed on Amer-I-Net Services
Corporation; 2) a $2 million forfeiture imposed on Long Distance Direct, Inc.; 3) a $1 million
forfeiture imposed on Brittan Communications International, Inc.; 4) a Consent Decree entered
into between the Enforcement Bureau and Sprint Communications Company, LP, resulting in a
voluntary contribution to the U.S. Treasury of $250,000; and 5) a Consent Decree entered into
between the Enforcement Bureau and Excel Telecommunications Company, Inc., resulting in a
voluntary contribution to the U.S. Treasury of $400,000. In addition, the Commission recently
released an order that further strengthens its slamming rules to take the profit out of slamming
and create additional industry-wide disincentives against slamming. That order also supports
increased joint cooperative efforts between the Commission and the states to tackle slamming
issues.
(over)
Action by the Commission, June 6, 2000, by Order FCC No. 00-205. Chairman Kennard,
Commrs. Ness, Powell, Tristani; Commr. Furchtgott-Roth concurring in part, dissenting in part
and issuing a separate statement.
- FCC -
Enforcement Bureau Contacts: Katherine Power at (202) 418-0919 and John Winston at
(202) 418-7450.
News Media Information 202 / 418-0500
TTY 202 / 418-2555
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov
ftp.fcc.gov
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the full text of a Commission order
constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).